Small and disadvantaged business enterprises.
AB 915 amends existing laws to require that state procurement decisions progressively incorporate small and disadvantaged businesses. This aligns with the state’s recognition of the significant contributions these enterprises make to the economy, particularly in terms of job creation and tax base contributions. Furthermore, the bill seeks to enhance transparency and accountability in how state agencies interact with small businesses and to ensure that these enterprises are fairly represented and supported within the procurement ecosystem.
Assembly Bill 915 aims to enhance the involvement of small and disadvantaged business enterprises (DBEs) within the state's procurement processes. It mandates state agencies to appoint a small business liaison responsible for promoting the participation of small businesses, ensuring that at least 25% of state procurement goes to these enterprises. The bill also highlights the importance of economic equity and diversity in the state’s procurement strategy and mandates the creation of an action plan to strengthen the partnership between state agencies and small businesses, particularly those owned by marginalized groups.
The general sentiment around AB 915 is largely positive, with support from various stakeholders including business groups and advocacy organizations that see it as essential for fostering a more inclusive economic environment in California. This initiative is particularly relevant in the context of economic recovery efforts following the COVID-19 pandemic, as small businesses are critical to the state's economic health. However, there are concerns from some sectors about the feasibility of the mandated goals and the potential limitations they may impose on the procurement process.
While AB 915 is broadly supported, some contention arises regarding the specific goals set for small business procurement. Critics argue that the requirements to achieve a certain percentage of procurement could impose additional burdens on state agencies, potentially complicating their operational flexibility. Additionally, there are discussions about how effectively the policy can drive meaningful change without comprehensive support and resources for the businesses it intends to help.